Kipenzi Chidinma
Marketing Director
Digital Color Printing Trends and Opportunities
2/25/2011 1
Digital Color is Exploding
8x Faster
Growth Than
Traditional
Print!
Digital Color
Traditional
Co
mp
ou
nd
An
nu
alG
row
th R
ate
Source: CAP Ventures
3/20/2008 3
Turnaround
Time
Source: NAPL
Of printers cite turnaround pressure
59%
Digital Color will lead growth
22%
Source: CAPV
Print on
Demand Run Lengths
Source: INTERQUEST
Of four-color jobs are already less than 5,000
Variable
Content
43%
Expecting their variable printing to
increase in the coming year
Source: Strategies for Management 2005
What’s Driving Digital Growth?
70%CAGR
2/25/20114
Let’s look at an example of using VDP
•First name personalization
•Number of steps calculated based on address info
•Turn by Turn Directions from house to store
•#1 Selling Shoe in its category while campaign ran, (Sears) You can hike there in only 21,120 steps.
But you might want to wait till you have the shoes.
2/25/2011 4
2/25/20115
What is Personalized One to One Marketing?
Personalized Marketing is a way to have pictures, graphics, messages, offers, and calls to action differ according to the needs of an
individual recipient.
It is much, much more than changing the address block.
2/25/2011
The Power of Color
Awareness and Comprehension - Up 80%
Communicate and Sell Ideas - Up 88%
Timely Payment of Invoices - Up 30%
Learning and Recall - Up 55% to 78%
Source: CAPV
6
3/20/2008
Color + Personalization =Increased Response!
Plus
44%
Plus
45%
Plus135%
Plus
500%
Source: Digital Print Council
7
2/25/2011 8
The Power of Personalized One to One Marketing
A 34% faster rate of response
Source: CAPV Study for IBM
A 48% increase in repeat orders
A 25% greater average value of each order
A 32% increase in overall revenue 0%
10%
20%
30%
40%
50%
Ov erall Rev enue Order Value Repeat Orders Response Rate
2/25/2011 9
Cost per Response – Not Cost per Piece
Example: Traditional Campaign
Budget: $100,000
Size of Mailing 285,714
Cost per Direct Mail Piece $.35
Response Rate* 1.5%
Responses 4,286
Cost per Response $23
Source: Direct Mail Marketing Association
2/25/2011 10
Cost per Response – Not Cost per Piece
Example: Variable Content
Campaign Budget: $100,000
Size of Mailing 166,667
Cost per Direct Mail Piece $.60
Response Rate* 5%
Responses 8,333
Cost per Response $12
Source: Romano & Broudy
2/25/2011 11
Impact on Response Generation
Example: Campaign Budget = $100,000Traditional Variable Content
Cost Per Piece $ 0.35 $ 0.60 Response Rate* 1.5% 5.0%Size of Mailing 285,714 166,667
Responses 4,286 8,333
Cost Per Response $ 23.33 $ 12.00
Net/Net: 1:1 Marketing costs less per response.
2/25/2011 12
Impact on RevenueExample: Campaign Budget = $100,000
Traditional Variable ContentCost Per Piece $ 0.35 $ 0.60 Response Rate* 1.5% 5.0%Size of Mailing 285,714 166,667 Responses 4,286 8,333 Conversion Rate 20% 20%Revenue Per Sale $ 200 $ 200
Total Revenue $ 171,440 $ 333,320
Which campaign would you run?
2/25/2011 13
Forms of Digital Data:
- Printed Marketing Pieces - Customized Postcards- Direct Mailing Pieces - Customized Magnets- Targeted Mailings - Customized Printed Materials
